JNJ Return on Equity (ROE) Analysis
Higher than 100% of HEALTHCARE sector peers
Updated 57h ago·SEC filings & market data
Key Takeaway
Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity.
Sector Performance
100th percentileJNJ
25.7%
Sector Median
19.9%
Sector Avg
19.9%
Prior Period
26.4%(Jul 2026)
Deep Analysis
Return on equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity.
At 25.7%, JNJ earns about $0.257 per dollar of equity, which is well above the healthcare sector median of 19.9% and places it in the 100th percentile of sector peers. The year-over-year change is N/A, the quarter-over-quarter change is N/A, and the trend direction for the last 8 quarters is N/A, so no recent movement in ROE can be assessed. Because the level is high but the trend is unknown, the opportunity from strong current profitability is tempered by an inability to see whether that performance is improving or deteriorating. This high ROE supports the case for a quality business, but it does not contradict the overall CAUTIOUS verdict, since the missing trend data leaves uncertainty about future persistence. The metric alone does not justify a more positive stance.
Frequently Asked Questions
What does the Return on Equity (ROE) tell investors about JNJ?
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
How is the Return on Equity (ROE) calculated?
Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.
How does JNJ's Return on Equity (ROE) compare to its sector?
JNJ's Return on Equity (ROE) of 25.7% compares to a HEALTHCARE sector median of 19.9%, placing it in the 100th percentile.
Who are JNJ's closest peers by Return on Equity (ROE)?
The closest HEALTHCARE peers by Return on Equity (ROE) include: UNH (14.2%).
Learn More About Return on Equity (ROE)
The Formula
Net Income / Shareholders' Equity
Why It Matters
ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.
Master JNJ's Valuation
Get the complete institutional research report covering all fundamental and technical metrics.
View full JNJ research report →Closest Sector Peers
JNJ
25.7%
Sector Median
19.9%
Sector Avg
19.9%
How JNJ's Return on Equity (ROE) compares to sector peers.
Also Analyze
Not financial advice. Research tool only. Data may be delayed.